Prairie Peoples Packers: Progress in the Post-Productivist Project?

Ian MacLachlan and Ivan Townshend,

Department of Geography, University of Lethbridge

Lethbridge, Alberta, T1K 3M4. E-Mail: maclachlan@uleth.ca

Western Division, Canadian Association of Geographers

March 10, 2007

Feed Bunk Capacity, 2002

Feed bunkNumber of Region

capacityfeedlots

564,30070Lethbridge County

102,70018Northern Alberta

19,0006Southeast

240,70029Newell-Taber

73,50014Foothills

96,00020Red Deer

317,40032Calgary-Claresholm

122,70021Three Hills-Vermilion

1,536,300210Alberta Total

Feedlots > 1,000 headSource: CanFax, 2002

Feed Bunk Capacity, 2007

Feedlots > 1,000 headSource: CanFax, 2007

Region Number of Feed bunk

  feedlots capacity

Lethbridge County 65 565,200

Northern Alberta 17 125,050

Southeast 5 16,500

Newell-Taber 28 238,900

Foothills 13 78,000

Red Deer 19 66,300

Calgary-Claresholm 28 369,200

Three Hills-Vermilion 22 127,100

Alberta Total 197 1,586,250

Structure of Talk

Agroindustrialization Post-productivist paradigm The BSE Crisis Ruminant slaughter capacity expansion New Gen. Co-ops & small scale slaughter Prairie People’s Packers:

Progress in the Post-Productivist Project?

Winnipeg Tribune 1906

2.4 tons per year per head

Agroindustrialization

Concentration

Intensification

Specialization

Post-Productivist Transition of Agriculture

Movement away from Concentration Intensification Specialization

Towards Extensification Diversification Dispersion

How will Post-Productivism be manifest?

Farm diversification Agricultural - traditional mixed farming Other businesses located on the farm

Off-farm employment Winding down, hobby-farming, retirement Reduction of food output

… in favour of food quality

How will Post-Productivism be manifest?

Policy & Regulation Reduction of agricultural subsidies More competitive markets for food Growing regulation of agriculture

More sustainable agricultural methods Reduced chemical farming Preserving environmentally sensitive areas Habitat reserves

Food safety Traceability Organic farming

How will Post-Productivism be manifest?

“New Consumer”: Growing interest in origin & processing of food High quality specialty foods

Healthy food Traceability

Regional foods Authenticity of geographical origin Country-of-origin labeling Relocalization, food localism, 100 mile diet

“At La Gantoise, the foodchain has only 2 links - you, the consumer and us, the producer. Our frozen meat also comes with a guarantee of traceablility for every cut of beef you purchase. Our experienced on-site butcher knows how to prepare fine cuts of beef.”

Post-productivism or Agroindustrialization?

2 regimes, each with its own geography

Intensive, high-input, high-output, large scale “hot-spots” e.g.

Lethbridge County Fraser Valley

Extensive, low input, low output, quality, sustainability

Marginal agricultural regions e.g. Foothills Cariboo

The BSE Crisis

May 20, 2003, Wanham, Alberta U.S., Mexican, Asian borders closed

To live animals on the hoof To Canadian beef products

September 2003 – border reopened to UTM beef July 2005 – border reopens to UTM cattle

30

35

40

45

50

55

60

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

Annu

al b

eef c

onsu

mpt

ion

(kg/

capi

ta)

10

11

12

13

14

15

16

Tota

l cat

tle p

opul

atio

n (m

illio

ns),

Janu

ary

1

Beef consumption Cattle population

Strategy toReposition the Canadian Livestock Industry.

Federal government, 10 Sept 2004: reopening the U.S. border facilitating increased domestic slaughter capacity sustaining the industry until capacity is increased increasing the international market share of Canadian

beef.

House of Commons

Hon. Stephen Harper (Leader of the Opposition, CPC): “Mr. Speaker, our farm families were told that the border would be opened. Now the border is not open. They do not want to have more wait and see. They want the Prime Minister to look and to take some action. Slaughter capacity must be increased.”

(House of Commons, Debates, March 8, 2005)

Source: Estimates provided by Red Meat Section, Agriculture & Agri-Food Canada

Canadian Weekly Cattle Slaughter Capacity

0

20,000

40,000

60,000

80,000

100,000

120,000

Provincial non-fed cattle

Provincial fed cattle

Federal non-fed cattle

Federal fed cattle

40% increase!

Big 3 – merger & large scale plant expansions:

1. Cargill, High River Better Beef, Guelph

(2005)

2. Tyson Foods, Brooks

3. XL Foods, Calgary WCBP, Moose Jaw

(2000)

People’s Packers Mainly NGCs Salmon Arm, B.C.–

Borden, PEI Middle-sized

Cattlemen, January 2005

People’s Packers Characteristics

New Gen Coops or producer-owned Members buy “hooks” – obligations to deliver

livestock for slaughter

Traceability Natural/organic beef – large specialty markets Value-added processing – local foods

Natural Valley Slaughter Plant: Neudorf, Saskatchewan

September 2006

Ranchers Own Meat ProcessorsStony Plain, AB

January 2007

New Plant Additions to Canadian Weekly Cattle Slaughter Capacity

Name Location Organization Capacity Status

Rangeland Beef Processors Salmon Arm, BC NGC 500 Abandoned

Peace Country Tender Beef Co-op Berwyn AB NGC 500 Pending

Rancher's Beef Rocky View AB Producers 4,000 June 2006

Canadian Premium Meats Lacombe, AB Corporate 500 Opening May 2007

South River Foods Lacombe, AB Corporate 2,500 Pending

Rancher's Own Meat Processors Stony Plain, AB NGC 4,000 Opening Fall 2007

TK Ranch Natural Beef Hanna, AB NGC 300 Abandoned

Northwest Cattlemen's Alliance Lethbridge, AB NGC 10,000 Abandoned

New Generation Processor's Coop Pincher Creek AB NGC 1,000 Abandoned

Prairie Prime Processing Co-op Ryley, AB NGC 2,500 Pending

Alberta Value Chain Coop Ltd. Ft Assiniboine AB NGC 500 Abandoned

Canada Farm Direct AB acquisition Producers 24,000 Pending

Natural Valley Farms Inc. Neudorf, SK NGC 1,250 Sep 2006

Natural Valley Farms Inc. Wolseley, SK NGC   Processing only

Beef Initiative Group SK? NGC 7,500 Pending

DMB Food Processors (Canada) Qu'Appelle, SK Producers 10,000 Pending

Nesco Meats Melfort, SK NGC 1,600 Pending

Rancher's Choice Beef Co-op Dauphin, MB NGC 1,300 Abandoned

Natural Prairie Beef Inc. Neepawa, MB Producers 1,000 Pending

PRO-East Beef Eastern ON NGC 1,500 Pending

Brussels Processing Plant Brussels, ON NGC 2,500 Pending

Atlantic Beef Products Inc. Borden, PEI NGC 500 Dec 2004

Σ=10,250

Peoples Packers

Cows that under normal market circumstances would have been culled

Expansion to Existing Federally Inspected Cattle Slaughter Capacity in Canada (Weekly)

Name Location Prov Livestock 2003 2006

Cargill Foods High River AB Cattle 20,000 29,000

Lakeside Packers (Tyson) Brooks AB Cattle 20,000 28,200

Better Beef (Cargill Foods) Guelph ON Cattle 6,500 10,000

WCBP (XL) Moose Jaw SK Cattle 3,500 7,500

XL Foods Calgary AB Cattle 4,750 5,000

Abattoir Colbex (Levinoff) Drummondville QU Cows 2,500 4,750

M.G.I. Packers (Gencor Foods) Kitchener ON cows/bulls closed 1,500

St. Helens Packers Toronto ON Cattle closed 1,600

Ryding/Regency Meat Packers Toronto ON Cattle closed 1,500

All other federally inspected       3085 4,865

Total       60,335 93,915

Σ=33,600

Existing Large Scale Cattle Slaughter Plants

Conclusions Impact of BSE: capacity expansion

Vindication of the agroindustrial paradigm Limited post-productivist initiatives such as NGC

Will they succeed? 70% capacity utilization rate at present

Strong export markets for live cattle to US Strong Canadian dollar Overseas markets are either closed or restricted

E.g. China, Taiwan, South Korea (Japan 21 months)

Further research Model optimal plant locations?